FMA warns firms in breach of money-laundering law

Twelve financial entities have been officially warned by the regulator after they were found to be in breach of anti-money-laundering law.

The Financial Markets Authority requested information from 77 reporting entities — about 10 per cent of those it monitors — on how they counter money laundering and financing of terrorism risks.

The entities were due to submit audits to the FMA by November 25.

Of the 12 that were found to be noncompliant with the law, nine did not provide an audit, two did not respond at all and one did not submit an annual report as legally required.

Entities are required to get their AML and CFT programmes audited every two years and have to submit it to a regulator when requested.

Liam Mason, director of regulation at the FMA, said the regulation had been in place for more than three years.

“Firms and individuals have now had sufficient time to meet the legal requirements. We have taken proportionate action to ensure all reporting entities are clear about their obligations under the law.”

The FMA said it chose not to name the 12 companies and individuals as they were either small businesses or individuals, and naming them would have had a disproportionate effect.

All nine of the companies that failed to provide an audit were now taking steps to do so.

The FMA said it would be taking further steps against the two reporting entities that did not respond to its requests and the single reporting entity that failed to provide its annual AML/CFT report if they failed to respond to its warnings.

Mason said independent audits were an essential component of complying with the Anti-Money Laundering and Countering Financing of Terrorism Act to ensure robust systems were in place.